Local AM Welcomes Welsh Government Decision to support Welsh Steel

The Cabinet Secretary for Finance in the Welsh Government, Mark Drakeford, has announced the publication of a new procurement advice note (PAN) which will continue the Welsh Government’s support for the steel industry across the UK. The PAN builds on the recommendations in the Steel Report by the Tata Steel Task Force in January 2016, which identified public procurement as an area of support for the steel industry in Wales and the UK. The PAN will provide clarity to the Welsh public sector on approaches which should be adopted to open up sub-contract opportunities for Welsh and UK steel suppliers.

David Rees, Aberavon’s AM said: “The Welsh Government’s decision to publish a new PAN, which will encourage greater use of Welsh and UK steel in public sector contracts, will be of huge benefit to Welsh Steelmaking. The previous PAN in 2016 helped the Eastern Bay Link Road project source 89% of its steel from Wales. This next initiative will offer continued support for the Welsh steel industries and its thousands of employees.”

“The success of the previous advisory note in 2016 has shown how this Welsh Government has acted to support our steel industry and steelworkers and I envisage this PAN going further. I hope that the investment from infrastructure and construction projects continue to benefit Welsh companies, workers and their families.”

The steel PAN encourages public sector bodies to determine which of their procurements are major projects in which steel is likely to be a critical component. It suggests they may include but are not limited to:

Infrastructure projects – such as rail and roads;

Construction projects – such as the building of and or refurbishment of prisons, hospitals, universities, housing, community centres, bridges and schools;

Flood defences.

Professor Drakeford said: “The publication of the PAN is part of our ongoing commitment to support the long-term viability of steel making in Wales and recognises the importance of steel to the Welsh and UK economy as a provider of highly-skilled, well-paid jobs – both directly and in the supply chain – and as a key investor in further education and research and development.”